Forum Replies Created
- Daneo79 wrote:OK. I know what you mean. I wapprebe setting it up under a discretionary trust structure, so changes things a bit. My (back of envelope) calcs. include man. fees, settlement/purchase costs, insurance, rough rates guess, connections, ect..
But that is off topic.
Can I just knock on the door and ask the tenant if they would like to enter into a L2B option?
Is it best to tell the agent my intentions early?
What are the real pros and cons?
Terry,
You raise a good point about the end of the lease option, one of the big cons against proceeding.
Thats why I am asking you guys!
How much extra can you put on top of existing rent?
Or am I better off making some improvements, air con, ect… and slightly increase rent to try and get it neutral?
Thanks for the feedback so far, appreciated.
Many minds make light work.
Any mark up etc is up to you and up to how good your negotiation skills are. As much as you can get.
I
n my view, if there is going to be capital growth you don't want to be selling an option.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
pav007 wrote:If you happened to bump into the real property owners whose house is about to be possessed. Can you buy it of that owner before it gets possessed.If a house gets possessed by the Bank, does the Bank put a mark on the owners credit like a default or Bankruptcy something?
Yes, a loan default and a judgment.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Bruce – this is def wrong. You cannot benefit from Artwork in your SMSF. It would have to be stored away from where you could look at it. Enjoying it would breach the sole purpose test – which is to provide for the retirement of the members, not the enjoyment before retirement.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Catalyst wrote:You don't. They will not sell it to you.The bank will send it to auction. It is the only way to prove they sold it at market value.
Not true. I recently acting for a client purchasing a mortgagee in possession property for sale by an agent.
The bank will use an agent to sell the property so there is no need to contact the bank – you would never be able to get on the right person anyway.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
But if the property is neutral or slightly postively geared how are you going to make a profit out of it? You would need a big back end profit when they cash out the option.
I have done a few of these and the 'tenants' make much more than the buyers.
They only way you make money is if they don't take up the option for some reason.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Why would you want to do that? For a few extra dollars per week in rent what would you be giving up?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Neil,Y
ou shoud see a professional. You need to work out the deductibile portion and then you should split the loan. Take the terms of your settlement with you. This is likely to be considered a private expense, but depends.
Taking tax advise from a guy a HR is like taking nutrition advice from a staff member of McDonalds.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I've come to the conclusion that very few professionals know what they are talking about. Including lawyers, doctors, hair dressers and travel agents.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I can't believe the things people do! But it happens. One accountant told me one of his clients purchased a residential house in his SMSF and moved into it!. Accountant refused to have anything to do with him after that.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I'm in Sydney too – Lawyer and Finance broker/
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
DEVILZ wrote:hmhm true, because it's cross-collateralised it is ONE BIG LOAN isn't it? and both loans have same interest rateNot its not – or I hope it is not. You can have separate loans but still cross collateralised. (crossing is a bad thing!)
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I think it is safer and easier just to pay the GST and then claim it back later. Otherwise the vendor will want to insert a special condition to make the purchaser liable for it if the commission comes back later and says GST is payable – which it could be if it is not really a going concern.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
DEVILZ wrote:as I stated from the start there is a Split IO loan: $400 K locked and $47 K variable with offset so I can put money there.but $47 K loan and Unit loan $170 K they have same interest rate @ 5.79
If the owners of both properties are the same then it doesn't matter which offset you use as the effect will be the same.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
There is a possibility this will be income tax not CGT.
If it is CG then you may get the 50% discount and that figure is then added to your other taxable income and you pay tax at the marginal rate.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
It could be true in some circumstances. No GST if it is a going concern with a few conditions.
You need to be very careful with the contract of sale.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I have a lender that would lend to a bankrutp person 6 months out of bankruptcy. Up to 80% LVR, rate is a bit high at 9.35% at the moment, but it is possible to borrow.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
dvestate wrote:The house will be generating income, my mortgage on the property is 200K, it is worth about 340K and will bring in rent at $400pwIn terms of asset growth I would expect it to be modest over the next 5 years
I
f you were to sell this house that would mean approx $120k cash you release could be paid off the new main residence loan saving you non deductible interest – will you have a loan on the new one?
What state is the old one in?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Todd Giles wrote:I have a similar question with regards to the original post and thought I'd chuck it in here instead of starting a new topic.My question,
Assuming they owe around $170000 ( a guess), i'm also guessing that the property would be valued at around $400,000, would it be possible to purchase the property from them for around 280000, 290000. giving them enough money to pay out their loan and also make a nice profit. While also giving me equity once getting the property valued. I would then in turn rent it out to them, but at a rate that would cover IO repayments. saving them more money on what they were paying and giving them the chance to enjoy life a little more. Aswell as making it a at worst neutrally geared IP.
Obviously the figures i've stated are just a guess, but the main question would be, are there any tax/legal no-nos about buying below value and both profiting, parents debt free and extra cash, me my first IP with a fair bit of equity good to go?
Yes, possible. But the points listed above in my post still apply.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
theycallmeBruce wrote:Haha yes, that's right They Call Me Bruce was a comedy / action movie!Terry – Great to hear your a CTA, and everything else, all the important skills you have to buy and sell properties, so I guess you save on every transaction? So do you have clients you work with remotely, ie use internet comms 100% without need for face to face meetings?
HiBruce,
I can work remotely, but not for the finance part as must meet face to face. For the law side I could.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
What country ?
Cannot be done in Australia.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
